Mutual & Federal - Operational update for the nine
MAF
MAF
Mutual & Federal - Operational update for the nine months ended 30 september
2006
Mutual & Federal Insurance Company Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1970/06619/06)
(Share code: MAF. ISIN: ZAE000010823)
("Mutual & Federal" or "the company")
OPERATIONAL UPDATE FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2006
Trading conditions within the short-term insurance industry continue to be
highly competitive and premium growth within each portfolio has remained broadly
in line with inflation. The positive underwriting results achieved during 2005
have resulted in continued downward pressure on rates and this has been
exacerbated by substantial weather-related losses during the period. The
underwriting surplus for the 9 months ended 30 September 2006 was nevertheless
satisfactory following adherence to responsible underwriting standards and
diligent claims management.
The solvency level has reduced following the payment of a special dividend of R2
billion in September 2006 and this will favourably impact the future return on
capital. The Board is satisfied that the present solvency level is adequate to
support the current operations and facilitate future development of the
business.
The Board advises that short-term insurance results fluctuate and those for the
first nine months are not necessarily indicative of the outturn for the
remainder of the year.
RESULTS SUMMARY AT 30 SEPTEMBER 2006
Rm 2006 2005
(9 months) (9 months)
Gross premium income 6,426 6,003
Net earned premiums 5,463 5,109
Underwriting ratio 4,4% 9,3%
Solvency ratio 44% 63%
Year-to-date pre-tax adjusted operating profit:
First half 490
Year-to-date pre-tax adjusted operating profit:
Quarter 3 715
The abovementioned results have not been audited by the company"s auditors. The
results for the year 31 December 2006 are expected to be published in the second
week of February 2007.
Johannesburg
28 November 2006
Sponsor
Nedbank Capital
Date: 28/11/2006 08:01:27 AM Produced by the JSE SENS Department
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